ACC325_E3_P1

ACC325_E3_P1 - ACCOUNTING 325 EXAM III PART I FALL 2010 Name Use the following to answer questions 1-2 The following information was available from

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ACCOUNTING 325 - EXAM III - PART I - FALL 2010 Name: ___________________________________________ Use the following to answer questions 1-2: The following information was available from the inventory records of Rich Company for January: Unit s Unit Cost Total Cost Balance at January 1 3,000 $9.77 $29,310 Purchases: January 6 2,000 10.30 20,600 January 26 2,700 10.71 28,917 Sales: January 7 (2,500) January 31 (4,000 ) Balance at January 31 1,200 1. Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar? A) $12,606. B) $12,284.** C) $12,312. D) $12,432. 2. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar? A) $12,606. B) $12,284. C) $12,312. D) $12,432.** Page 1
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Use the following to answer questions 3-4: Niles Co. has the following data related to an item of inventory: Inventory, March 1 100 units @ $4.20 Purchase, March 7 350 units @ $4.40 Purchase, March 16 70 units @ $4.50 Inventory, March 31 130 units 3. The value assigned to ending inventory if Niles uses LIFO is A) $579. B) $552.** C) $546. D) $585. 4. The value assigned to cost of goods sold if Niles uses FIFO is A) $579. B) $552. C) $1,723. D) $1,696.** Use the following to answer questions 5-8: Transactions for the month of June were: Purchases Sales June 1 (balance) 800 @ $3.20 June 2 600 @ $5.50 3 2,200 @ 3.10 6 1,600 @ 5.50 7 1,200 @ 3.30 9 1,000 @ 5.50 15 1,800 @ 3.40 10 400 @ 6.00 22 500 @ 3.50 18 1,400 @ 6.00 25 200 @ 6.00
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ACCOUNTING 325 - EXAM III - PART I - FALL 2010 5. Assuming that perpetual inventory records are kept in units only, the ending inventory on a LIFO basis is A) $4,110.** B) $4,160. C) $4,290. D) $4,470. 6. Assuming that perpetual inventory records are kept in dollars, the ending inventory on a LIFO basis is A) $4,110. B) $4,160. C) $4,290.** D) $4,470. 7. Assuming that perpetual inventory records are kept in dollars, the ending inventory on a FIFO basis is A) $4,110. B) $4,160. C) $4,290. D) $4,470.** 8. Assuming that perpetual inventory records are kept in units only, the ending inventory on an average-cost basis, rounded to the nearest dollar, is A) $4,096. B) $4,238.** C) $4,290. D) $4,322. Page 3
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9. June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 10 units that cost $20 per unit. During the current month, the company purchased 60 units at $20 each. Sales during the month totaled 45 units for $43 each. What is the cost of goods sold using the LIFO method? A)
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This note was uploaded on 04/10/2011 for the course ACC 325 taught by Professor Sign during the Spring '11 term at S. Alabama.

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ACC325_E3_P1 - ACCOUNTING 325 EXAM III PART I FALL 2010 Name Use the following to answer questions 1-2 The following information was available from

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